All posts tagged S&P

Canadian households may be weighed down by heavy debt loads, but much of the country’s economic health remains in their hands, according to Standard & Poor’s.

Canadians’ decision “to spend or to save,” will steer the Canadian economy for the next couple of years, said Robert Palombi, managing director at S&P’s Toronto office.

That’s in part because households now account for a larger part of the total spending in the economy than before the recession, with their share increasing to 54% from 52% in that period, the ratings firm said in a report released Monday. That’s only slightly lower than the record 56% touched in the early 1990s, Mr. Palombi said. Read More »

Canada will be grappling with a cloudy growth outlook and volatile commodity prices in its budget Thursday, but will likely be able to keep its prized Triple-A rating intact, credit rating analysts say.

The budget for the 2013-14 fiscal year is expected to pull back on spending growth and show the federal government is on track to balance its books in fiscal 2015-16, or soon afterward, helping Canada retain its coveted status as one of a handful of Triple-A rated nations among the world’s major economies.

“What we find comforting is that from a fiscal and debt perspective, Canada remains in solid shape compared to peers,” said Travis Shaw, vice president of public finance at DBRS Ltd., in an interview with Canada Real Time.

Each of the four main ratings agencies – Moody’s Investors Service Inc., DBRS, Standard & Poor’s and Fitch Ratings – currently designate Canada as a Triple-A rated country with a stable outlook. Read More »

Housing prices are falling. Forecasts for economic growth are shrinking. And recently, rating agencies are increasingly taking aim at the narrative that’s helped define Canada’s relatively strong navigation of the global economic crisis and its fitful recovery: That the country’s banking system is impregnable.

Late Thursday night, Standard & Poor’s Ratings Services downgraded by a notch six financial firms, including Bank of Nova Scotia and National Bank of Canada.

That follows a broader review in October by Moody’s Investors Service Inc., which put six of Canada’s biggest banks under review for possible ratings downgrades, citing Canada’s high consumer-debt levels and housing prices. Read More »

TORONTO–Standard & Poor’s Ratings Services is now saying what Canadian officials have been for some time now: The struggling global economy is likely to drag on Canada’s resilient one.

In a report this week, S&P forecast Canada’s real GDP at 2.1% this year, matching the Bank of Canada’s forecast. But S&P paints a less optimistic picture for next year, warning that with the fragility of the global recovery and impairments in international trade, growth is likely to slow to 1.9% in 2013. The Bank of Canada’s had forecast a 2.3% expansion.

The S&P also cautioned that the strong Canadian dollar will drag Canada’s export-driven economy. Despite the gloomy warning, the firm’s outlook sees Canada’s economy continuing to expand, and doesn’t indicate that the country’s coveted triple-A credit rating is in harm’s way. Read More »

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Canada Real Time provides insight and analysis into what’s making news in Canada, a country punching above its weight on the world stage thanks to its vast resources and strong banking sector. Drawing on the expertise of The Wall Street Journal and Dow Jones Newswires, we take a look at developments in fields ranging from business to politics to culture. You can contact the editors at canadaeditors@dowjones.com